Key Takeaways This quarter's results exceeded expectations, driven primarily by improved operational efficiency, exceptional cost control, and a strategic positioning that capitalized on rising oil prices.

Key Data First-quarter adjusted net profit was $1.8 billion, and free cash flow was $1.5 billion. The company also raised its full-year oil production guidance by 2,000 barrels per day and NGL production guidance by 6,000 barrels per day.

Operational Progress The company demonstrated strong operational execution this quarter, continuing to make progress on cost control. Management emphasized the flexibility of its multi-basin portfolio. In response to weak natural gas prices, the company has reallocated capital from natural gas assets to higher-return oil assets while maintaining its $6.5 billion capital budget unchanged. This highlights its ability to strategically adapt in a dynamic market.

Guidance & Outlook Management holds a positive view on the energy market outlook, believing that geopolitical conflicts will support oil prices. The company raised its 2026 oil and NGL production guidance while keeping capital expenditure unchanged. It expects record full-year free cash flow under the current oil price environment and plans to return at least 70% of free cash flow to shareholders.

Risk/Positive Signals Management’s tone was optimistic and confident, emphasizing that the company is “uniquely well-positioned” in the current macro environment to effectively capitalize on volatility, with its low-cost structure and strong balance sheet serving as core competitive advantages.